Selling 50% of house to partner

otemple

Hi everyone


I have owned my house since 2011 and my partner moved in at the same time as me but had no stake in the property. Now we have been together for a few more years she would like to buy into the property, which I think can be done through a transfer of deeds.


However, as the property is worth circa £400k and my outstanding mortgage is only £175k, I will become mortgage free which means my partner will be the only party with a mortgage against the property. Is that possible as hypothetically if she should default on the debt the bank would not be able to repossess the house as I would have part ownership, so I assume they would not lend on this basis.


Any guidance would be appreciated as no one seems to know the answer on this one


Thanks

Mallotum_X

I assume you are not married, as it wouldnt really matter.

If you both own, then the mortgage companies will want you both on the mortgage, which solves the issue over default and repossession.

What are they reasons for "buying in"? if its for security then a will would solve much of that. Much of the advice on the best things to do will be down to what you are both trying to achieve.

If she can finance a 200k mortgage has she considered a BTL instead?

otemple

Thanks for the response, it is much as I assumed.


We are not married and it is not about security but her desire to feel like she is 'paying her way'.


We have discussed BTL and both agree this makes a lot of sense but in our area (Reading) the competition is fierce and I suspect most of the good properties go to those who are 'well connected'!!

Thrugelmir

Why does your partner have all the debt and you the equity?